13 Dec 2021 07:00
TUNGSTEN CORPORATION PLC
("Tungsten" or the "Company")
13 December 2021
For Immediate Release
US Litigation Settlement
Tungsten Corporation PLC (AIM: TUNG), a leading provider of digital financial management products and software solutions, announces that it has agreed to pay the amount of USD $1,500,000 (GBP: £1,128,000) in full and final settlement of an employment claim made against the Company in the United States that was initiated in early 2020, together with associated legal fees of $513,000 (GBP: £386,000). The Company denies the allegations made in relation to this claim but believes that settlement of the claim at this time is in the best interests of the Company and its shareholders.
The payment of the settlement is due within the next 5 weeks, and it will be funded out of Tungsten's existing cash resources. The payment and associated legal fees will be treated as exceptional items.
Whilst we are naturally disappointed with this outcome, we are however pleased to report that the Company's closing net cash position for October 2021 was £1.9 million. This is £1.1m higher than management expectations due to strong cash collections and cost savings, and an increase of £0.9 million compared to October 2020. We continue to keep strong control over the cost base and do not expect to increase our current draw down of £2m under the facility.
Enquiries
Tungsten Corporation plc Paul Cooper, Chief Executive Officer Ian Kelly, Chief Finance Officer
| +44 20 7280 6980
|
Canaccord Genuity Limited (Broker and Nominated Adviser) Simon Bridges/Andrew Potts
| +44 20 7523 8000
|
Tavistock Communications Financial PR & IR Heather Armstrong Jos Simson Katie Hopkins | +44 20 7920 3150 |
About Tungsten Corporation plc
Tungsten Corporation (AIM: TUNG) is the world's largest, compliant business transaction network. A leading global electronic invoicing and purchase order transactions network; Tungsten's mission is centred on enabling a touchless invoice process allowing businesses around the globe to gain maximum value from their invoice process.
Tungsten processes invoices for 60% of the FTSE 100 and 68% of the Fortune 500. It enables suppliers to submit tax compliant e-invoices in 54 countries, and last year processed transactions worth over £220 billion for organisations such as Caesars Entertainment, Computacenter, GlaxoSmithKline, Kraft Foods, Mohawk Industries, Mondelēz International, Procter & Gamble, Shaw Industries, Unilever, and the US Federal Government.
Founded in 2000 and headquartered in London, Tungsten has offices in the US, Bulgaria, and Malaysia, employing over 227 people.
This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.